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Vonage Settles Patent Suit With Nortel


By Jennifer Lawinski, ChannelWeb
2:46 PM EST Mon. Dec. 31, 2007
VoIP provider Vonage announced on Monday that it has agreed to settle its legal dispute with networking communications company Nortel Networks, bringing a tumultuous year of patent disputes to an end for the Holmdel, N.J.-based company.

The settlement involves cross-licensing three Nortel and three Vonage patents involving 911, 411 and click-to-call features, and neither company will make monetary payments to the other. "Unlike some other settlements for patent litigation we've been involved with we don't pay Nortel a dime," said Charles Sahner, spokesman for Vonage.

Claims over past damages will be dismissed without prejudice, according to Vonage.

"We also agree to enter a new phase of our relationship. One that's a positive business relationship," said Sahner. "It enables us to put the last of the high-profile big-name patent law suits behind us and allows us to keep focusing on moving the company forward. "

Vonage settled patent disputes with AT&T, Verizon Communications and Sprint Nextel earlier in the year.

The dispute between the two companies began when Vonage acquired the patents in question from Digital Packet Licensing in 2006. DPL had sued Nortel for patent infringement in 2004, and Vonage continued the litigation. Earlier this month Nortel filed a counter-suit, and this settlement resolves all litigation between the companies.

Shares of Vonage were up 13 percent in afternoon trading, hitting $2.26.


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